Accessory Dwelling Units (ADUs) are an increasingly popular way to generate additional rental income on an existing property.

The investment city determines rent growth rate, appreciation, and income longevity.What determines rent growth?

It’s a way to earn solid returns without the day-to-day work.

Median incomes are an insane gap from cost of household/properties.

I think it is pretty rare that people getting free space rent actually work enough to earn it. 

My thinking is that by renting to a residential care facility I can effectively utilize all the space, earn above market rent, and help provide a needed service, while avoiding tenant parking jams. 

I use this for tax and insurance which all properties have)Expenses (general business like admin/legal and by unit for repairs, trash, utilities...)EBITDA (earnings before interest/taxes/depreciation/amortization.

It's not fool-proof, but I think odds of earning 7.5% using a barbell strategy in the average year on your money is 97% likely with very very little effort. 

Give them a little extra motivation to maximize property income and keep things running smooth like butter.

@Charles EvansFrom my experience, having rental income of $1,400 to offset a $2,600 mortgage, leaving you with a $1,200 payment, is a manageable setup with an income-to-mortgage ratio of 28.5%.